DEFIMARKET

【Dapp Pocket】DeFi Weekly Report - Week 2 of May

share
【Dapp Pocket】DeFi Weekly Report - Week 2 of May

Weekly Summary
The Ethereum online virtual summit Ethereal Summit concluded this week, with heavyweight guests such as Vitalik Buterin, the founder of Binance CZ, in attendance; Aave announced new products this week and revealed plans for a new token governance model in the future; Maker also discussed in a blog post how Dai can help those without bank accounts; dex.blue released a survey this week on the profile of DeFi users, exploring who uses DeFi more and why.

This week's insights include ConsenSys conducting a market research on Eth2, examining how current ETH holders view the arrival of Staking; Ryan Selkis suggesting that the definition of a nation is no longer borders but currency; and Vitalik mentioning CBDC at the virtual summit, hinting at using Ethereum as a permissionless issuance platform. We were honored to have decentralized lending protocol Aave's Marc Zeller as our expert guest this week, discussing Aave's core values, mission, and thoughts on DeFi current affairs. Our viewpoint this week focuses on our new partner - Aave, a continuous innovator in the DeFi space; and the promotion of CDBC in the era of negative interest rates... could this be the trigger for Ethereum 2.0 to explode?

DeFi (Decentralized Finance) refers to decentralized financial services. Simply put, it operates on a decentralized model to address issues in the traditional financial industry such as slow transaction speeds, high costs, vulnerability to hacking, and potential misuse by nations or organizations. The current DeFi ecosystem can provide interest-bearing loans, asset shorting, high leverage operations, and even unique flash loan services.

Advertisement - Continue scrolling down for more content

Author Introduction

  • Raizel / Economics major at NCCU, trapped by Bitcoin and turned attention to DeFi
  • Thomas / DeFi enthusiast working in chip design in Boston
  • Anderson / Founder of Dapp Pocket, believes in DeFi deposits over bank deposits

Weekly Highlights

【Ethereal Summit】Gathering of Big Names - Don't Miss These Sessions

The Ethereal Virtual Summit concluded last Friday. This online summit, a significant blockchain/cryptocurrency event in the first half of 2020, featured leaders from various fields including developers, artists, startups, entrepreneurs, and investors. Key speakers included Vitalik Buterin, Sergey Nazarov, Zhao Changpeng, Joseph Lubin, among others. If you missed the live event, you can watch the full content on the official YouTube channel.

【Ethereal Summit】Vitalik's Insights: Ethereum's Role in Connecting the World During the Pandemic

Vitalik Buterin, the founder of Ethereum, discussed Ethereum's potential post-COVID-19, user influx into crypto due to the crisis, and cybersecurity issues in the DeFi space during the Ethereal Virtual Summit. He emphasized that DeFi attacks are not inherent but rather centralized entities are vulnerable. He also addressed concerns about the open-source nature of DeFi projects, acknowledging potential risks but highlighting the benefits of code review and contributions.

How Dai Meets the Needs of Unbanked in the U.S. and Abroad

Last Thursday, Maker, a leading DeFi lending platform, published an article on how Dai addresses the financial needs of the unbanked globally. It highlighted the lack of bank accounts due to various reasons, emphasizing the accessibility benefits of using cryptocurrencies and blockchain technology for these underserved populations.

DeFi User Profile: Who's Using DeFi?

A recent survey revealed insights into DeFi users, indicating motivations such as financial independence and preferences for user interface in lending platforms. The survey sheds light on the growing DeFi community and user needs.

Other Highlights

Data Indicators

This week's data covers May 4th to May 11th, with price snapshots around 8:00 PM. TVL stands for Total Value Locked, indicating the total value locked in the platform. Data sources include DeFi Pulse, CoinMarketCap, Maker's official site, Compound's official site, AAVE's official site, and more.

DeFi Lending Platform Scale

DEX Scale

Coin & Token Value

Expert Insights

Mara Schmiedt: Exploring Ethereum 2.0 Staking Ecosystem

ConsenSys' strategy manager, Mara Schmiedt, shared insights from interviews with 300 Ethereum holders, discussing expectations for Ethereum 2.0, staking, intermediaries, and future ecosystem recommendations.

Ryan Selkis: Nations Defined by Currency, Not Borders

Ryan Selkis, founder of Messari, shared thoughts on how countries are defined by the currency they use rather than geographical borders. He emphasized the importance of crypto-friendly policies for countries to succeed in the 21st century.

Vitalik Buterin: Ethereum's Role in CBDC Projects

Vitalik Buterin discussed Ethereum's potential role in central bank digital currency (CBDC) projects, emphasizing Ethereum's potential as a neutral platform in CBDC initiatives.

Expert Interview

Episode 4 of the DeFi Expert Visit features Aave's Integrations Lead - Marc Zeller, discussing Aave's story. Aave, a decentralized lending protocol, has seen rapid growth since its launch in January, with over $50 million in assets locked in its pool, ranking fourth on DeFi Pulse.

Aave's Core Values and Mission?

Marc: Aave's essence aligns with blockchain's core value - individuals own their assets, not banks. Aave operates without Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements, providing users full control over their assets. Aave's open-source nature allows code review and contributions, emphasizing the ethos of "Don't trust, verify." Aave aims to bridge all platforms and crypto markets within DeFi, enabling asset fluidity and user creativity.

Aave's custody-free and transparent model offers users convenience. Depositors see immediate interest accrual on their deposited Dai, abstracting the complexity behind the scenes. This simplicity enhances user experience, a key aspect for DeFi's growth.

Why is Flash Loan Revolutionary and Its Applications?

Marc: Flash Loans are designed based on Ethereum's atomicity. Unlike Bitcoin transactions, Ethereum's flexibility allows multiple function calls in a single transaction, ensuring all changes are rolled back in case of errors. Aave's Flash Loans enable "impossible to default loans" for any contract, offering opportunities for various operations previously exclusive to large players.

Upcoming Products from Aave?

Uniswap Market - Aave recently launched uniswap.aave.com on the Ethereum Ropsten testnet, allowing users to provide liquidity on Uniswap, further lending the acquired uni token on Aave for additional interest. This initiative aims to boost market liquidity.

Aavenomics - A new governance model where LEND token holders will have voting rights on Aave contract modifications, providing insurance for Aave's pool. This governance structure resembles that of MakerDAO.

Views on Recent DeFi Attacks?

Marc: The initial attack on bZx was a learning experience for the community, but the subsequent attack due to hasty service reopening was a platform error. The dForce incident stemmed from copying Compound's contract without adequate auditing, resulting in a significant reentrancy attack. While hackers returned the funds, these events underscore the importance of cybersecurity.

As Joseph Lubin stated at the Ethereal Virtual Summit, "our world progresses through builders and destroyers." Marc noted that each attack event elevates Ethereum's overall security standards.

Rapid-fire Q&A

Q: How did Aave's brand logo and colors come about? Are official T-shirts available for purchase?

Q: Which stablecoin shows the most promise?

Q: How will Aave impact people's physical lives in the future?

Q: Thoughts on Ethereum 2.0?

Q: Opinion on projects like Keep Network tBTC bridging Bitcoin and Ethereum?

For the full interview, listen on Soundcloud!

Our Perspective

Aave: Innovator in DeFi Continues to Innovate

Aave has been a pioneer in DeFi, launching ETHLend, the earliest decentralized lending platform even before the DeFi trend. With innovations like Flash Loans, Aave showcases the potential of DeFi lending surpassing traditional finance. The ability to borrow without collateral offers opportunities for arbitrage and quick profits, a feat unattainable in traditional finance.

In addition, Aave continues to expand in DeFi, becoming the first platform to offer lending with USDT, providing attractive rates of over 10% interest. Their upcoming Uniswap Market allows users to provide liquidity on Uniswap and further lend the acquired Uni Token, doubling interest. Aave's future integration with markets like Set Protocol raises intriguing possibilities. As the LEND token tripled in value over the past month, the crypto community eagerly anticipates Aave's future.

CBDC, Negative Interest Era, Ethereum 2.0: Crypto's Golden Age?

As China's DCEP implementation nears, global central banks, including Taiwan's, evaluate the need for issuing digital currencies, recognizing the need to embrace, not block, cryptocurrencies and DeFi. The rise of Central Bank Digital Currencies (CBDC) becomes a focal point for countries. Additionally, the possibility of unprecedented negative interest rates in the US could reshape short-term savings concepts and alter market expectations.

With Ethereum 2.0 aligning with CBDC initiatives, the ease of access to DeFi platforms for CBDC holders eliminates barriers, providing opportunities for lending and mining. As the world shifts towards CBDCs and negative interest rates, Ethereum's 2.0 launch could mark a new era for cryptocurrencies, offering unprecedented accessibility and financial opportunities.

For more details, read the original article.

Related Reads

  • 【Dapp Pocket】DeFi Weekly Report - First Week of May
  • Block Height 629,999: Cryptic Messages - Coinbase data, do you understand?
  • Another Application for Chainlink! Introducing "Chainlink VRF" for Random Number Verification

Join our